Can Bitcoin price hold $24,000 as stock correlation is lowest since 2021?

Bitcoin (BTC) fell to a five-day low on Feb. 22, while the downtrend for US stocks continued.

BTC/USD 1 hour candlestick chart (Bitstamp). Source: TradingView

Analyst on Bitcoin: “Waiting for a bit lower”

Data from Cointelegraph Markets Pro and TradingView recorded lows of $23,871 on Bitstamp, with S&P 500 futures dropping below 4,000 before Wall Street opened.

Bitcoin bulls had lost ground after the US holiday weekend, which ended in weakness in stocks and a failed attempt to flip $25,000 into support.

For Cointelegraph employee Michaël van de Poppe, who hoped the correction would be short-lived, it was time to wait.

“Markets are correcting while US indices are also correcting right now. This means: opportunities!” He told Twitter followers on the day.

“I think I will wait for a little bit lower on Bitcoin to get activated for a long position.”

Van de Poppe had previously predicted a move to as high as $40,000 for BTC/USD before a correction sets in, potentially abolishing 50% of that high.

Meanwhile, Dylan LeClair, senior analyst at UTXO Management, warned that a “crisis” between stocks and US bonds continued.

“Bonds rolled over the past month served as a blinking alarm for a turnaround, in which stocks became the most expensive relative to bonds since pre-GFC as 2021 bubble favorites led the rally,” part of a Twitter post thread read.

Another post nevertheless noted that Bitcoin’s correlation to stocks was at its lowest since late 2021, but “still very positive”.

“I am very interested to see how bitcoin trades during the next risky move in old markets… Let’s see,” LeClair added.

Macro asset vs. Bitcoin correlation annotated chart. Source: Dylan LeClair/Twitter

Binance “Notorious BID” is filling

Within Bitcoin, attention was still focused on a sizable bidding wall, which had moved the spot price in recent days by moving around the Binance order book.

Related: Bitcoin asset appeals to ‘care’ analyst despite 50% BTC price gains

Dubbed the “Notorious BID” by monitoring resource material indicators, bid liquidity met spot price head-on as Bitcoin fell and bids filled.

With support removed from the order book, Material Indicators added in accompanying comments that it would be “very happy” if BTC/USD now drops further to $21,500.

“The bidding wall was filling up. Liquidity has not stopped moving in the order book long enough to analyze. Waiting for it to settle down,” another post stated.

The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cointelegraph.


Leave a Reply

Your email address will not be published. Required fields are marked *